MILLIONS of Brits are set to be hit with increases to several household bills this year.
Some will even go up by hundreds of pounds so it’s good to know which bills are rising and when.
Millions of Brits are set to be hit with increases to several household bills this year
The latest research from Compare the Market has revealed how, on average, household bills surged by £326 in the past year.
This includes the cost of energy, water, home insurance, motor insurance, and council tax.
The total annual cost for regular household bills is now approximately £5,589, up from £5,263 last year.
The different amounts bills are going up by and when can be confusing, which is why we’ve made a handy list to keep you right.
That way you’ll face no surprises and we’ve included a few tips on how to keep your costs down as well.
Here’s everything you need to know that’s happening this year.
Energy – January 1
Energy bills rose by £94 for millions of households on January 1.
The energy regulator Ofgem confirmed the new price cap will be in place until March 31.
The cap rose from £1,834 to £1,928 a year for the average household.
It’s important to note though that this is not a cap on the overall amount people will pay for their energy.
Instead, it caps the amount that they pay per kilowatt hour, or unit, of gas and electricity.
It’s not the only time energy bills will be changing this year either.
At the moment the energy price cap is adjusted every three months, and the next change will come on April 1.
The price cap is due to fall by £268 to £1,660, according to energy analysts at Cornwall Insight – but this won’t be confirmed until February.
This trend is currently expected to carry on through 2024, falling again to £1,590 in July before a slight increase to £1,640 from October.
The best thing we can recommend doing to keep costs at bay is paying attention to vampire appliances and energy-suckers around the home.
For example, switching to different settings on your washing machine or dishwasher could shave off £53 from your yearly bill.
If you’re struggling to pay your bill then you should ask your supplier for help, as they may have a fund that you can apply for to get discounts off your bills or to help pay off debts.
Rail fares – March 3
Rail fares are set to rise again in March, although not by using the usual formula based on July’s Retail Prices Index (RPI), which was 9%.
Fares will instead be hiked by 4.9% next year, the Department for Transport has announced.
The rise will affect season tickets on most commuter journeys, some off-peak return tickets on long-distance journeys, and flexible tickets for travel around major cities.
The current cost of a weekly commute from Oxford to London is £6,096, which will rise to £6,394 from March next year – £298 more.
Meanwhile, a season ticket from Tunbridge Wells to London will rise by £372 to £5,829.
If you’re taking a lengthy train journey then you could save hundreds of pounds by splitting your tickets.
You won’t need to change trains and National Rail lets you split your ticket as long as the train calls at the station you buy the tickets for.
One site that works this out for you is Splitticketing.co.uk.
Network Rail releases its timetable 12 weeks in advance, so ticket firms usually make their fares available at this time.
Just like plane tickets, the earlier you book the lower the price you’ll pay for your seat.
You can sign up to the Trainline’s ticket alert service and it will tell you when cheap advance tickets go on sale for a particular journey.
Also, the National Rail’s future travel chart shows the furthest advance date that you can buy tickets.
If you’re a regular traveller then a railcard should shave a third off the price of your ticket.
Just make sure you’ll make more in savings over a year than the price of the Railcard.
See Railcard.co.uk for more information.
Water – April
Firms usually put up water bills each April so you’ll need to be ready to splash out a little more this month.
Last year saw the largest hike in annual water bills in nearly 20 years when they rose to an average of £448 a year.
The exact amount your bill will rise from will depend on where you live, how much you’re charged and the rate it’s increasing.
You’ll have a different water company assigned to you depending on which area you live in.
That company is responsible for setting the costs of bills and the rises for residents.
Unfortunately, you can’t simply switch to another one when you’re unhappy like you can with other utilities.
However, moving to a water meter could help some save a little extra cash.
One mum previously told The Sun how she more than halved her water bill after getting a meter – saving over £200 a year.
If you do use a lot of water then it makes no sense to have a meter as your bills could go up.
The Consumer Council for Water offers a free water meter calculator that’ll tell you if you can save by fitting a water meter.
For example, if you have a big family and more people than bedrooms or simply use lots of water-intensive appliances like washing machines or dishwashers, a fixed fee will be better for you.
Having a water meter doesn’t help with the standard charge that’s based on where you live either, but it can help you cut down the costs of your usage at home.
Many water companies also offer free water-saving devices that shave pounds off your bills.
Contact your supplier or check out savewatersavemoney.co.uk to find out what’s on offer.
Council tax – April 1
Council tax is once again expected to rise from April 1.
The payment is an annual fee you pay to your local council.
The cost is set by your council and goes towards funding local services.
The exact amount payments will rise by is set to be announced in February.
Last year saw the majority of local authorities hike rates by 5% – though in some cases bills went up by 15%.
Councils decide how much to increase council tax bills every April, and how much more you’ll pay depends on where you live.
Your council will share its plans with the residents at the beginning of the new financial year in April, so make sure you check its website if the information hasn’t already been uploaded.
You should check what council tax bracket your home falls under by entering your postcode on the government website.
And you can also use the council tracker tool if you don’t know which your local council is.
But keep in mind that people on low incomes or benefits such as Universal Credit may be able to get a discount on their council tax.
This can vary between councils, but you could be exempt from paying any council tax at all.
The schemes are means-tested, and will usually depend on your income and any children or adults living with you.
Single adults living in a property can get a 25% discount on their bill.
This applies to anyone either living alone or with a young person aged under 18.
It’ll also count if you live with someone aged 18 or 19 in full-time education.
Alternatively, a reduction could be applied if a disabled person is living in the property.
This is known as a disabled person’s reduction and each council has its own criteria.
You may also get 50% off your council tax if you live with someone who is severely mentally impaired.
For more information make sure to browse your local council’s website.
Broadband and mobile – April 1
The rules state that telecom firms are allowed to increase prices in line with inflation and an extra 3.9% on top.
These rises also impact those who are within a contract, and they kick in from April 1 usually.
December CPI inflation or January Retail Price Index (RPI) is normally used to decide these rises.
CPI inflation was 3.9% while RPI was at 5.3% in December.
But, providers could be banned from linking price rises to runaway inflation figures under new proposals from Ofcom.
The regulator said mobile and broadband customers were being hit with mid-contract rises which they found difficult to understand.
It comes after Which? warned that broadband customers could pay £150 more than expected due to “unpredictable” mid-contract price rises in 2024.
The simplest way to save more of your hard-earned cash is by switching your supplier when your contract expires.
If you’re outside the minimum term of your contract then you won’t need to pay a cancellation fee – and you might be able to find a cheaper deal elsewhere.
If you’re still in your contract period, you might be charged an exit fee.
But don’t just switch contracts because the price is cheaper than what you’re currently paying.
Take a look at how much speed you need for broadband or how many minutes and texts, as well as how much data you’re using on your mobile, to find out which deal is best for you.
Use comparison websites, such as MoneySupermarket and Uswitch to compare the best tariffs and phone prices.
If you’re happy with your provider then it might be worth using your research to haggle a better deal too.
TV licence price increase – April 1
Households will be paying more for their TV licence fee from next year.
For the past two years, the licence fee has been frozen at the price of £159 but that is set to change.
It was expected that an increase was on the horizon as it was previously agreed the fee would rise in line with inflation after April 2024.
This has since been confirmed and the BBC licence fee will rise from £159 to £169.50, as of April 1 – an increase of £10.50.
Everyone who watches TV in the UK needs to pay their annual licence fee, which counts for any live TV or anything on BBC iPlayer on any device.
If you don’t have one it’s a criminal offence and you could be landed with a fine of £1,000.
But if you’re on Pension Credit and over the age of 75, you might be exempt, meaning you could save £159 a year.
Pension Credit is a benefit designed to boost incomes, but it’s estimated millions are entitled to it and don’t claim it.
That means many are missing out on the free TV licence and other help too.
Similarly, if you or someone you live with is in any way visually impaired, they may be entitled to a 50% discount.
If you live in a residential care home or sheltered accommodation, you may be able to apply for a reduced licence which will normally cost you £7.50 instead.
Plus if you’re a student you could be covered by your parents’ licence even if you live away from home – but you shouldn’t watch on a device plugged into the mains in this case.
Meanwhile, here are 17 big money changes coming in this year and what they mean for YOU.
Plus, six major pension changes you need to know about.
You can also join our new Sun Money Facebook group to share stories and tips and engage with the consumer team and other group members.